The Group typically experiences an outflow of working capital in the first half of the financial year and an inflow in the
second half. This is primarily due to the seasonal nature of working capital flows associated with its media buying activities
on behalf of clients.

Acquisitions and disposals:

Six monthsended30 June2009£m

Six monthsended30 June2008£m

Year ended31 December2008£m

Initial cash consideration

(28.1)

(94.1)

(891.9)

Cash/(overdraft) and cashequivalents acquired (net)

0.9

(9.9)

(6.1)

Earnout payments

(37.8)

(30.4)

(67.8)

Loan note redemptions

–

(2.6)

(2.6)

Purchase of other investments(including associates)

(36.7)

(42.8)

(91.7)

Proceeds on disposal of investments

8.7

3.8

11.0

(93.0)

(176.0)

(1,049.1)

Share repurchases and buy-backs:

Six monthsended30 June2009£m

Six monthsended30 June2008£m

Year ended31 December2008£m

Share cancellations(excluding brokerage fees)

–

(112.2)

(112.2)

Shares purchased into treasury

(9.5)

–

–

Proceeds on disposal oftreasury shares

–

–

6.9

(9.5)

(112.2)

(105.3)

Net increase in borrowings:

Six monthsended30 June2009£m

Six monthsended30 June2008£m

Year ended31 December2008£m

(Decrease)/increase in drawingson bank loans

(534.0)

–

1,273.3

Proceeds from issue of£450 million 5.75% convertiblebonds due May 2014

450.0

–

–

Proceeds from issue of$600 million 8.0% bondsdue September 2014

367.4

–

–

Proceeds from issue of€750 million 6.625% bondsdue May 2016

–

594.6

594.6

Repayment of €650 million 6.0% bonds

–

(515.1)

(515.1)

Repayment of $100 million 6.875% bonds

–

–

(50.5)

Repayment of $150 million 5.0% bonds

–

–

(96.2)

Repayment of TNS debt

(175.7)

–

(395.7)

107.7

79.5

810.4

Cash and cash equivalents:

Six monthsended30 June2009£m

Six monthsended30 June2008£m

Year ended31 December2008£m

Cash at bank and in hand

1,026.9

1,193.8

2,485.9

Short-term bank deposits

71.3

83.1

86.6

Overdrafts1

(380.3)

(646.1)

(1,254.4)

717.9

630.8

1,318.1

1

Bank overdrafts are included in cash and cash equivalents because they form an integral part of the Group’s cash management.